Light does not shine in light

This morning I heard a report on the news that the price of crude oil on the international market has dropped to below $50 per barrel. Ofcourse, this is a fall out of the recession that has been on going in the World now for several weeks. What is happening is that the order for crude oil has dropped desperately because many more countries, organisations and people around the world don’t have the extra to pay for crude oil derivatives. (gas, diesel etc.). Crude Oil price due to this situation has hit a 3yr low and could go lower. The fact that OPEC hasn’t sufficiently cut down on production to create scarcity in the market isn’t helping at all. Read the rest of this entry »

First City

In our opinion, The CBN postponement by one year for banks to converge their year end may offer a respite both for the banking sector directly and also the capital market as the sector constitutes above 60% of the market capitalization of the Nigerian Stock Exchange.
While the banks may heave a sigh of relief, stakeholders, especially Nigeria’s foreign partners and investors may worry about the credibility of CBN or question the decision-making process of the industry regulator, as policy somersaults have been the bane of the country both in the past and in the present times.
It can be hoped that Nigerian banks will put on their thinking caps to utilize this window of time extension to ensure an orderly convergence without doing damage to the banking sector and the economy as a whole.  We also hope that regulatory authorities and managers of the Nigerian project will be more consultative and engaging with industry operators and stakeholders in making major policy decisions that impact on the economy. Read the rest of this entry »